The Income Effect for an Inferior Good

question 127

Multiple Choice

The income effect for an inferior good

• A) is negative.
• B) is positive.
• C) is zero.
• D) could be negative, zero or positive.

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Definitions:

High Pitch

Frequencies of sound that are higher and usually perceived as sharper by the human ear.

Gestalt Psychology

A theory of mind which posits that psychological phenomena must be viewed as organized, structured wholes (Gestalts) rather than the sum of their parts.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.

Stirrup

A small bone in the ear that helps transmit sound vibrations to the inner ear; also known as the stapes.